The Effects of Personal and Organizational Factors on Role Ambiguity amongst Internal Auditors

Abstract

Increasing concerns about company failures has given rise to the significant role of risk management in organizations. The Institute of Internal Auditors (IIA) has introduced a new framework which specifies that internal auditors' responsibilities include managing risks. This change from traditional to modern obligation may cause internal auditors to be uncertain regarding this function. This study investigates the effects of personal and organizational factors on role ambiguity amongst internal auditors in Malaysia. Survey questionnaires were distributed to 202 internal auditors. The results of this study provide insight into how individual and organizational factors impact the role ambiguity of internal auditors. The findings suggest that individuals with higher competency and autonomy experience lower levels of ambiguity. Furthermore, highly structured companies with in‐house internal audit create lower ambiguity for internal auditors in Malaysian companies.